CALGARY, Alberta, April 19, 2018 (GLOBE NEWSWIRE) -- Vogogo Inc. (“Vogogo” or the “Company”) (CSE:VGO) today announces that it has entered into an agreement (the “Agreement”) to acquire 14,000 newly installed cryptocurrency mining machines (21 megawatts) plus supporting infrastructure, in a state of the art facility near Montreal. Upon closing, the Company will also enter into a lease agreement for the facility, which has available power such that the Company can add a further 8,000 mining machines (additional 12 megawatts, total approximately 33 megawatts), which would result in a total of 26,125 mining machines being operated by the Company.
The purchase price of $46 million CAD is payable as $36 million in cash plus a $10 million promissory note payable to the vendor. The note bears interest at 8% per annum, for a two year term, with monthly interest payments during the term of the loan. Principal is repayable as $5 million on the first anniversary date of the loan and $5 million at maturity. The promissory note is secured by the mining machines and other assets acquired. The transaction is expected to close on or around June 1, 2018.
Dale Johnson, Chairman of Vogogo, commented, “This acquisition positions us as an industry leader.”
“Scale is extremely important with respect to the mining of cryptocurrency,” said John Kennedy FitzGerald, Chief Executive Officer of Vogogo. “Our goal is to be the largest and most profitable in three cryptocurrency verticals, namely mining, payments and currency exchange,” added Mr. FitzGerald.
About Vogogo Inc.
Vogogo currently operates its cryptocurrency mining activities at a state-of-the-art facility in Pointe-Claire, Québec. This includes mining for cryptocurrencies for its own account, as a service for third party customers and within mining pools. As it continues to embrace blockchain technology, Vogogo is exploring opportunities in all aspects of the cryptocurrency segment, including the three verticals of mining, payments and currency exchange.
For information or interview please contact:
John Kennedy FitzGerald
Chief Executive Officer and President
403-648-9292
1Based on 30.61 Ehash/s as at April 18, 2018 [source – bitinfocharts.com]
READER ADVISORY
Neither the Canadian Securities Exchange (“CSE”) nor the Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. The words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Vogogo. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Vogogo. Vogogo does not have any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws.